Thanks all for the opinions. Appreciate them ALL.
Again just wanted to say I was never wanting to suggest I take him for a measly $500! I was saying $500 plus by initial 300 deposit. So 800 bucks.
I have decided he will stay, future joint gamble and all. If he doesnt make an eventer because of his history, he will make a GREAT trail horse and companion. I love his personality. I am going to proceed with the initial $1000. If she wants to offer him for less, that is her choice/decision.
As far as 1,000 being a steal on him- his potential does make it an incredibly good investment but he is still pretty green under saddle. The fact that he managed to place 2nd at an event kind of mystifies me. He has no leg cues, no lateral movements and needs a lot of work on the flat with bending, working in a correct frame, etc. Also, the area I am in is lower priced for most horses in eventing, because there are not a lot of shows too close to us so the market is not really here. I am sure in other parts of the county 1,000 WOULD be a steal, and while I consider it a pretty dang fair deal...it is not extraordinary down here in my area. In our market, horses like him go for that. My friend just recently got a finished 10 year old TB who has shown up to training level (and done well) for 3k. In other places, that horse might go for 7k+.
Thanks again for the input. Being able to talk it out helps me make final decisions. Appreciate it as always HF friends :)